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IREF® - Indian Real Estate Forum > Real Estate in India > More Cities/States > Real Estate Jaipur > Investment options other than NCR: Jaipur?
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Old April 13 2012, 11:42 AM   #1
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Default Investment options other than NCR: Jaipur?

Hello friends,

Although this thread should have ideally been in the Jaipur section, but Jaipur forum is really sleepy so thought of posting it here as it may interest a few guys.

I have been looking for VFM avenues for investment and Jaipur seems to be a good option. As per NHB residex, Jaipur has seen almost 40% correction in real terms from its peak in 2008 and the market has been stagnant / slightly declining for some years now.

There are quite a few plot schemes available around Mahindra SEZ which is 15-20 kms away from Jaipur. Although much development is not happening in SEZ, it may take off after say 4 -5 years, so it seemed to be a good option to invest in a plot there.

Private developers are selling plots for as low as 1000 - 1500 per sq yard around that area but that is all unauthorized and they say that it will be regularized in 1 year or so. However I also came to know that plots allotted to farmers by JDA in lieu of their acquired land are also coming up for resale and they are priced at around 5000 - 7000 per sq yard. However in some cases for very large plots (e.g. 1500 sq yard) at not so good location, they are available for even around 3000 per sq yard. From what I have heard, lottery and allotment of the plots has been done but the certificate to certify conversion from agricultural to NA will take 8-10 months.

Does anyone have any knowledge about these plots. Would it be a good investment if horizon long term (Possibly hold forever and construct). What are the risks associated? I guess since these have been allotted by JDA, the conversion to NA should not be a problem. Also I have heard that a lot of property frauds happen in Jaipur where fraudsters get fake property documents created even with their pics on it which look like real. Does anyone have any experience to share?

 
Old April 13 2012, 12:11 PM   #2
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One of my relative bought one such plot (Alloted to Farmer's in lieu of their land ) around a year back near by SEZ 4500/- psyd. I don't know what the price is as of now, but it seems a very long term inevestment atlest 5-6 yreas to get good returns their.

However, townships like Emmar MGF's Jaipur Green on Ajmer Raod, selling their plots at around 8k psyd.
 
Old April 13 2012, 02:58 PM   #3
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Quote:
Originally Posted by VIPG2011 View Post
One of my relative bought one such plot (Alloted to Farmer's in lieu of their land ) around a year back near by SEZ 4500/- psyd. I don't know what the price is as of now, but it seems a very long term inevestment atlest 5-6 yreas to get good returns their.

However, townships like Emmar MGF's Jaipur Green on Ajmer Raod, selling their plots at around 8k psyd.
Hi VIPG,

Thanks for replying. Do you know which block his plot is in and what is its size. I don't think price has changed much. I recently got a proposal for a 1250 sq mtr (1500 sq yard) for 43 Lakhs i.e. about 2950 per sq yard in block C. Earlier I had seen a few in block D 1000 sq yard for 2900 per sq yard. However I think the prices in block A and B are around 4500 per sq yard.
I too think so that the horizon for this would be more than 5 years.

Did your relative face any issues in the transaction? I.e. registration etc.?
 
Old April 13 2012, 03:06 PM   #4
 
 
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Plots/investments around Jaipur have more or less given poor returns ( there could be exceptions ) .

If u r in this for a pretty longish kind of investment horizon, it may make some sense .
 
Old April 13 2012, 03:29 PM   #5
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Agreed :

Quote:
Originally Posted by MANOJa View Post
Plots/investments around Jaipur have more or less given poor returns ( there could be exceptions ) .

If u r in this for a pretty longish kind of investment horizon, it may make some sense .
 
Old April 13 2012, 03:29 PM   #6
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I will talk to him and let you know the details.

Quote:
Originally Posted by AnkurPune View Post
Hi VIPG,

Thanks for replying. Do you know which block his plot is in and what is its size. I don't think price has changed much. I recently got a proposal for a 1250 sq mtr (1500 sq yard) for 43 Lakhs i.e. about 2950 per sq yard in block C. Earlier I had seen a few in block D 1000 sq yard for 2900 per sq yard. However I think the prices in block A and B are around 4500 per sq yard.
I too think so that the horizon for this would be more than 5 years.

Did your relative face any issues in the transaction? I.e. registration etc.?
 
Old April 13 2012, 03:30 PM   #7
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Quote:
Originally Posted by MANOJa View Post
Plots/investments around Jaipur have more or less given poor returns ( there could be exceptions ) .

If u r in this for a pretty longish kind of investment horizon, it may make some sense .
Hi Manoja,

My intention is to buy the plot and when the area around the SEZ gets populated, then construct a building over it for rental income.

Quite a few professionals would be working there in 5-7 years and it should give good rental income (Unless the whole SEZ turns out to be a flop show which has happened in a few states but for Jaipur the probability seems low).

I am ok for a long term investment so that way it should be fine. Real estate around Jaipur has been down for 3-4 years now and it may stay down for another 3-4 years but I think the property here is not overpriced for sure as is the case with other regions.

However my concerns are:
1) People have cautioned me against property frauds which are quite prevalent in Jaipur. I would like to take a loan from a bank to reduce the risk as hopefully they would check the papers etc. However last time I was there, only a coupld of banks were giving loans but they wanted a guarantor who had a JDA property worth more than the value of your purchase. I was left wondering as I was intending to take a loan as a guarantee but now the bank wants a guarantor as well. The guy explained that since agricultural to residential certifiate has not been issued yet, that's they wanted a guarantor. But I was not convinced.

2) Not sure if there are cases of land grabbing in Jaipur, so wanted some feedback on that.

3) Also wanted feedback that in case of a purchase the title etc. is cleanly transferred to your name. nothing should be pending for future. e.g. get 5 documents now and 2 after 10 months.
 
Old April 13 2012, 04:23 PM   #8
 
 
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Quote:
Originally Posted by AnkurPune View Post
Hi Manoja,

My intention is to buy the plot and when the area around the SEZ gets populated, then construct a building over it for rental income.

Buying a private Plot in this part is fraught with risks . Go for it, if u have good contacts in the JDA & all relevant information is accessible to u .

Quite a few professionals would be working there in 5-7 years and it should give good rental income (Unless the whole SEZ turns out to be a flop show which has happened in a few states but for Jaipur the probability seems low).

Future of SEZ's is still quite uncertain . So, total dependency on them is pretty risky .

I am ok for a long term investment so that way it should be fine. Real estate around Jaipur has been down for 3-4 years now and it may stay down for another 3-4 years but I think the property here is not overpriced for sure as is the case with other regions.

If u r looking at holding horizons of 8-10 years, do consider this region . It may yield good returns, but when is a big question .

However my concerns are:
1) People have cautioned me against property frauds which are quite prevalent in Jaipur. I would like to take a loan from a bank to reduce the risk as hopefully they would check the papers etc. However last time I was there, only a coupld of banks were giving loans but they wanted a guarantor who had a JDA property worth more than the value of your purchase. I was left wondering as I was intending to take a loan as a guarantee but now the bank wants a guarantor as well. The guy explained that since agricultural to residential certifiate has not been issued yet, that's they wanted a guarantor. But I was not convinced.

On the frauds & risks involved, i have already commented .

2) Not sure if there are cases of land grabbing in Jaipur, so wanted some feedback on that.

Not sure on the land grabbing part, but i have heard of many other issues like same land being sold to multiple parties, no clearances to sell land, land already under mortgage & sold with ill intentions to defraud etc...

3) Also wanted feedback that in case of a purchase the title etc. is cleanly transferred to your name. nothing should be pending for future. e.g. get 5 documents now and 2 after 10 months.
Not fully understood, what u mean here, but clean transfer would depend on how authentic is the sale .
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Old April 16 2012, 09:54 AM   #9
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Hi Manoja,
Thanks for your comments. They are helpful. My comments below:

Future of SEZ's is still quite uncertain . So, total dependency on them is pretty risky .

>> Why do you think it is uncertain? Atleast a few companies are already running operations there and I don't think there is any opposition from the farmers etc now.

If u r looking at holding horizons of 8-10 years, do consider this region . It may yield good returns, but when is a big question .

>> Yes, my horizon is very long term. Possibly forever. I completely agree that it is very uncertain when Jaipur real estate will go up. The property may remain stagnant for 3-4 or even 6-7 years. However when the SEZ becomes fully operational, it should go up. Even though it is not appreciating now, I feel that it is available at a fair price and that is a factor in me considering Jaipur SEZ plots.

Not fully understood, what u mean here, but clean transfer would depend on how authentic is the sale .
>> I wanted to know whether the SEZ plots have been officially allowed for resale by the Govt. I don't want to get involved if the owner is only going to provide something like "agreement to sell" now and final transfer would happen later.
 
Old April 16 2012, 10:39 AM   #10
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Hi Pals,

I am from Jaipur and I hold approx 8 plots in SEZ area ranging from 50 mtr to 900 mtrs.

The scheme is simply superb and I still feel that it is under priced even at current rates. there are very few frauds, so not much to worry.

a few companies have already started operations and lots r in pipeline. 3 university are coming up in near by area.

very promising plots but good for long term.
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